Then the consumer credit law applies
The consumer credit law applies to different types of contracts, all of which are subject to the same conditions:
- for private use only
- Loan amounts between 500 and 80,000 Swiss francs
- Loan term for more than three months
- Credit with no collateral deposited
The consumer credit law includes, for example, personal or consumer loans, credit cards, overdrafts and many other types of loans. But even if the KKG does not apply, certain laws apply. The right of withdrawal may cease and the borrower may not decide against the loan within the next 14 days after the loan has been approved.
The aim of the consumer credit law is to define rights and obligations and thus keep risks and payment defaults as low as possible. It includes the following points:
- Advertising bans for so-called instant loans and other aggressive offers
The credit industry has defined what aggressive promotions are. These include instant loans that are said to be paid out within a few minutes. You are not serious!
- Mandatory examination of the applicant's creditworthiness and creditworthiness
The borrower must be able to repay a loan within 36 months, but must also be able to meet his minimum living requirements. In order to obtain the relevant information, the central office for credit information or one of the various credit bureaus is interviewed.
- Compliance with the maximum interest rate
The maximum interest rates are currently capped at 10 percent by law.
- Regulations for early repayment of the loan
Consumer loans may be repaid before the credit expires. Interest for the unused credit period will then be waived.
- Cancellation rights of borrowers
Borrowers have the right to change their minds. The loan is therefore only paid out on the 15th day after the positive decision in order to preserve the 14-day right of withdrawal.
- Lenders' reporting requirements for approved loans
Every credit has to be reported! The information point for consumer credit must include the borrower's personal details, the number of installments, the start and end of the contract, repayment rates and any late payments.
Conclusion: The consumer credit law protects consumers and banks
The consumer credit law is intended to protect both consumers from over-indebtedness and banks from payment defaults. Various data must be obtained from the bank so that a loan can be legally granted. However, if the credit does not fall under the definition of the consumer credit law, other laws apply. This can include, for example, that the cancellation period does not apply and that once a loan has been committed, it must also be repaid as agreed.
You are planning to take out a loan and want to compare the personal loan offers and for that a loan comparison use?
Source: comparis.ch
